UBS Group released a report stating that Kingworld (03918.HK) recorded non-cash impairment in the Vladivostok project, and the second quarter profitability was affected by impairment of accounts receivable and employee bonuses. The management stated that whether further impairment of the Vladivostok project will occur depends on interest rates and business prospects, and currently the project has been impaired by one-third, approximately 89 million US dollars.

UBS Group has lowered the future two-year EBITDA forecast for Kingworld by 3%, and correspondingly adjusted the target price by 3% to 3.7 yuan. At the same time, the "Neutral" rating for Kingworld is maintained to reflect the company's slow profit recovery pace.